Three Amtrak fraud sentences link patient payments and provider identity misuse
Oct 11, 2026 edition · GC-2026-0284 · Published 2026-10-11 · Version 4 · Final
Three defendants received different prison sentences in the wider Amtrak health-plan fraud investigation. The releases distinguish a therapist’s license and bank-account misuse, a podiatrist’s false claims and unlawful prescribing, and an employee’s recruitment and extortion. The overall $11 million scheme is not each defendant’s individual loss.
What happened
DOJ reported three sentences on October 7–8 in an Amtrak health-plan fraud investigation involving payments to employees for their insurance information and claims for unprovided or unnecessary services. Physical therapist Jaekwan Lee received fifteen months on October 8 and $841,666 in restitution after allowing his license and business bank accounts to be used for fraudulent billing. Podiatrist Michael DeNicola received thirty-two months on October 7, with more than $1.6 million restitution and $1.3 million forfeiture, for healthcare-fraud conspiracy, unlawful controlled-substance distribution and unlawful firearm possession.
DeNicola’s conduct included sixty-four oxycodone prescriptions issued without legitimate medical purpose as part of the arrangement. Former Amtrak employee Devon Burt separately received twenty months and $959,072 restitution after recruiting employees and conspiring to threaten a participating provider for money. The wider investigation involved more than $11 million paid and nineteen guilty pleas; that total must not be attributed separately to each defendant or added again to their individual amounts. The cases connect patient incentives, use of provider credentials and accounts, and actual encounter evidence, with coercion requiring its own escalation to counsel and security.
Scope and timing
- Authority status
- Final
- Applicability
- Operationally relevant
- Audience
- Health systems, Provider networks
- Jurisdiction
- Federal
Why it matters
The providers billed unperformed or unnecessary services, while cash payments recruited insured employees. The three defendants' restitution figures differ from total scheme losses.
Recommended action
Review inducements, bank-account access, license use and encounter evidence; escalate threats or coercion through counsel and security.
Case details
- agencies
- DOJ
- entities
- Jaekwan Lee, Michael DeNicola, Devon Burt
- action Type
- Criminal resolution
- event Date
- 2026-10-08
- alleged Conduct
- False health-plan claims and cash recruitment; DeNicola also issued opioids without legitimate purpose and Burt participated in provider extortion.
- resolution
- Lee: 15 months and $841,666 restitution; DeNicola: 32 months, over $1.6 million restitution and over $1.3 million forfeiture; Burt: 20 months and $959,072 restitution.
Operational lessons
- Review inducements, bank-account access, license use and encounter evidence; escalate threats or coercion through counsel and security.
Sources
- Three Amtrak fraud sentences link patient payments and provider identity misuseOfficial · DOJ · 2026-10-08 · Source review 2026-10-11
- Amtrak podiatrist sentencingOfficial · DOJ · 2026-10-07 · Source review 2026-10-11
- Amtrak employee sentencingOfficial · DOJ · 2026-10-07 · Source review 2026-10-11
Complete edition and supplemental material
This finding in the complete approved report →Regulatory horizons, CIA trends and implementation trackers remain in the full report.
Read the entire Enforcement Briefing report →